Is there a way I can buy a home after obtaining a deed

xxmca1 · Joined: 13 Aug 2009 Posts: 1 1.49 Dollars($)

Listed my Georgia property (cabin+5AC) June 2008 when I quit my job and made a romantic move to California. Grew concerned as property didn't sell, although I was current on mortgage (paid out of Social Security); in August I found the deed-in-lieu option on Citi's website, (where I am SURE it said there would be no effect on my credit score!). I applied, keeping up my mortgage payments and never thought of checking the value of the house (still haven't!). The point was just to be rid of it. Not a word from Citi through the fall; in fact, my repeated phone calls to get a progress report were routed to voicemails and not returned. Meantime that romantic move proved to be a Mistake. I returned to Georgia as guest of in-town friends, the better to look for work, still current on my mortgage and still in the dark about the deed-in-lieu application. In October I reached a Citi Mortgage person who advised me to STOP paying the mortgage through December. By the end of October I had (miraculously) found a job, bought a car, leased an apartment near the job. Nothing from Citi 'til January, when I learned the deed-in-lieu had been accepted.
Today, in addition to having PAID OFF my credit card, being EMPLOYED, renting for HALF the amount of my former mortgage, I have received a small legacy resulting in higher net worth.
Now is the time to purchase a totally affordable little house. I want to pre-qualify. Question(s): will lenders take my situation into consideration to pre-qualify for a new (genuinely affordable!) mortgage, and will it help to offer a larger down payment, using a portion of my legacy?

Niicss · Posted: Fri Aug 14, 2009 2:16 am Post subject:

As there's already a mortgage in your name, you would have a tough time getting another mortgage for a new property. Moreover, you have also defaulted on your first mortgage payments and waiting for a deed in lieu of foreclosure. In such a situation, lenders would want you to pay a larger amount of down-payment. Many lenders would not consider giving you a loan.

bensonclive · Joined: 16 Aug 2009 Posts: 91 -0.12 Dollars($)

As you are already on the mortgage, I suggest you that you should consider a second mortgage on either your spouse's name ( if she qualifies ) or someone who is nearer to you. but again i will advice you that you should have a good kitty in order to pay for the down payment so that it will not be a big burden as you will have small EMI's.

Make sure you provide realistic information to your lenders stating the whole story as you have did it now.

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